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The use of the word ‘innovation’ has grown dramatically among IT services vendors in the last six months. These days, it appears difficult to avoid a reference to innovation in any vendor discussion, much in the same way that it was difficult to avoid a reference to agility a year ago.
However, after years of disappointment, client organisations are sceptical about vendor pitches concerned with innovation. Our own discussions with CIOs of client organisations indicate that many remain unconvinced of the IT service players’ ability to ‘deliver innovation’.

Table of contents
Key findings
Messages to service providers
Messages to client organisations
Defining innovation
Client innovation needs: vendor perspective
Client innovation drivers
Client CxO stakeholders and innovation
Barriers to innovation
Client intimacy as critical link to innovation

Vendors’ innovation network

The innovation ecosystem

The collaborative innovation process

Creating innovation
Delivering innovation
Measuring innovation
Rewarding innovation

Innovation in industry context

Vendor marketing of innovation
Innovation as a differentiator
Can innovation address the commodity threat?